Open banking paytech, Trustly, has unveiled an AI-powered recurring payments solution. The aim is to revolutionise how merchants handle repeat transactions through a single integration. According to Trustly, the

technology enables businesses to seamlessly accept recurring transactions directly from customers’ bank accounts, circumventing the limitations of time-consuming traditional payment methods such as cards.

Churn rates and payment failures plague repeat economy

It addresses the involuntary churn rates and payment failures that have plagued the repeat economy. As a result, it empowers businesses to capture and retain more revenue.

Trustly’s new solution taps into the growing subscription market, projected to reach $1.5 trillion by 2025. It claims to offer a significant upgrade over traditional direct debit and card setups. It says these legacy methods falter under high demand and diverse consumer preferences. This leads to an 8% churn due to card expirations and insufficient funds. An additional 12% of setups fail from manual entry errors.

By automating the payment process, Trustly aims to drastically cut the 50% abandonment rate at checkout, where users find payment setups too cumbersome. This transformative technology expands upon the capabilities of Trustly Azura, the company’s proprietary data engine. This has already enhanced signup processes, security measures, and fund collection efficiency.

Combining Direct Debit, account-to-account transfers, and Trustly’s Azura engine, the new solution aims to offer an unmatched experience for the end user.

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Leveraging AI and big data to transform recurring payments

Following the acquisition of SlimPay, this technology can also predict the optimal times for payment success. As a result, it will mitigate issues related to insufficient funds. Enhanced fraud prevention measures, including biometric authorisation and verified payment credentials, further ensure the integrity and security of every transaction.

Johan Tjärnberg, Group CEO of Trustly, said: “We are leveraging AI and big data to transform the recurring payments landscape. This ensures transactions are timely and aligned with user preferences to minimise churn and increase lifetime value. My vision is for Trustly to become the leading next-generation payment platform, enhancing security and user experience with real-time data and outperforming traditional payment methods. We are making significant strides towards empowering merchants, simplifying payments, and reducing uncertainties.”

Trustly Recurring Payment is available in France, the Netherlands, Italy, Germany, the UK, Spain, and Sweden.

Last month, Trustly reported that total transaction value processed during fiscal 2023 increased by 79% y-o-y to $58bn. This drove a 51% increase in operating profit with an adjusted EBITDA of $51m up from $33m in 2022.